In the matter of Hermitage Engadine Pty Ltd

Hermitage Engadine Pty Ltd applied to the Supreme Court for leave to bring a statutory derivative action on behalf of the company against certain of its directors and a related entity. The company sought to challenge decisions made by the directors and recover losses allegedly caused by those decisions. The defendants opposed the application on the basis that the applicant had not made out the necessary preconditions for leave to be granted.

The court considered whether the applicant had established that the proposed proceedings had reasonable prospects of success and that it was in the company's best interests to bring the proceedings. The court also considered whether the applicant had acted in good faith and whether there were any other factors that should be taken into account in deciding whether to grant leave.

The court held that the applicant had established that the proposed proceedings had reasonable prospects of success and that it was in the company's best interests to bring the proceedings. The court also found that the applicant had acted in good faith and that there were no other factors that should prevent the grant of leave. The court therefore granted the application and allowed the applicant to bring the proposed proceedings on behalf of the company. The final orders included that the applicant be permitted to bring the proceedings as a derivative action and that the defendants bear their own costs of the application.